SIGN IN
Language
Log In / Register
Search now
 
 
(Forgot your password?)?

Global News Link 

 
ATI Eyeing Fastener Stock Business Expansion
Add to my favorite
2012-11-23
Allegheny Technologies Inc.(ATI)is eyeing a push into the fastener stock business, according to an investment conference call transcript provided by SeekingAlpha.com. "...quite frankly, we made a number of years ago in the 2003-2004 timeframe when we significantly enhanced and rebuilt the capabilities of our continuous rolling mill, long products rolling mill facility in Richburg, South Carolina," CEO Richard J. Harshman told investors.  "So that, and the coil finishing capabilities that was added at the same time, really gave us a lot of the capabilities, not all, because we've had to do a few things to really put the kind of level of quality and dimension and surface condition control capability onto that mill, which we now have."
Harshman said that looking to grow the business, Allegheny is "uniquely positioned" to produce virtually all of the alloy systems that fastener stock is made from, both nickel and specialty alloy, as well as titanium alloy and different alloy systems. He noted how Allegheny is "integrated all the way back to melt in each one of those alloy systems, and in the case of titanium, actually all the way back to raw materials in terms of titanium sponge."
"As we continue to grow and position ourself in that market, we may need to do something in terms of adding capability on the wire finishing side, both from a coil product, as well as the straight-length product, and we are looking at that." He said added capacity would need to occur at the company's operations in Alabama, as well as in eastern Pennsylvania.
"To the extent that we need to do something there, I mean, you're talking about less than USD100 million and probably less than USD75 million." The news comes as Allegheny reported revenue edged up to USD1.36 billion in the second quarter of 2012, while net income declined 11% to USD58.7 million. The company said quarterly results were impacted by "slower than expected GDP growth in the U.S. and China and fiscal and economic uncertainties in Europe." Six-month revenue increased 0.5% to USD2.71 billion, with net income declining 6% to USD117 million.
ATI's sales to the global markets of aerospace and defense, oil and gas/chemical process industry, electrical energy, and medical represented 67% of ATI sales for the first six months of 2012. Sales to the aerospace and defense market were USD851 million and represented 31% of ATI sales.
Save and share
 
reference from FIN, arranged by Fastener World Inc.
Global News Link
 
 
2012-11-23

Subscribe